Fernando Ballester and other crew members claimed a salvage reward. The first instance Court ordered the defendant to pay 40% of the value of the salved ship and the cargo as a salvage reward. On appeal, the Federal Chamber of Appeal of Bahia Blanca (FCA) reduced the amount to 30% (USD 3,060,973), and distributed 2/3 to the crew and 1/3 to the shipowner of the salving vessel. The FCA stated that the adverse conditions referred to in the lower Court decision were, in reality, difficulties in the manoeuvres, not specific dangers, that the wind effect was not a serious difficulty, and the operations only lasted around two hours. The remuneration to the shipowner of the salving vessel was justified in that the success of the salvage was also due, although not primarily, to the quality of the equipment of that vessel, and that the crew was trained in the specific operations required for the salvage. Remuneration of 20% of the ship's value and its cargo to the crew of the salving vessel corresponded with the serious danger of loss they assumed, and with the difficulties and success of the operations. The defendant appealed to the Supreme Court (SC).
Held: The SC admitted the recourse, nullified the decision, and remanded the case to the first instance Court for a new decision.
The SC stated that, although the FCA reduced the amount of the remuneration, it was still disproportionate to the relative seriousness of the risks faced by the salving ship and its crew. The FCA judgment did not present a description of the magnitude of the risks, and the characteristics of the assistance were qualified as difficulties rather than specific dangers. It is correct that the determination of the remuneration is left to prudent judicial consideration, but it is evident that the decision inadequately considered the rules usually observed for its assessment. These parameters appear in art 379 of the Navigation Act, which contains criteria of international acceptance (corresponding to art 8 of the Salvage Convention 1910). Considering the references provided by some international authors, the average rate of salvage remuneration is about 13.66%, and as regards its distribution between shipowners and the crew, in cases where no distinction is possible, the crew is usually granted 25% of the total.
The salvage operations did not represent a severe danger for the salving ship and its crew, or highly complex technical operations. That makes clear the lack of reasonableness of the remuneration awarded by the FCA.